Richie Capital Group LLC, an equity-focused investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of -11.5% was recorded by the fund’s Long Short Portfolio in the fourth quarter of 2020, below its Russell 3000 benchmark, and S&P 500 index that delivered a 14.7% and 11.7% return respectively in the same period. Meanwhile, Richie Capital Group’s Long Only Portfolio delivered a 16.9% return in the past quarter. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Richie Capital Group, in their Q4 2020 investor letter, mentioned MarketAxess Holdings Inc. (NASDAQ: MKTX) and emphasized their views on the company. MarketAxess Holdings Inc. is a New York-based financial technology company that currently has a $19.6 billion market capitalization. Since the beginning of the year, MKTX delivered a -9.44% return, while its 12-month gains are still up by 47.07%. As of March 29, 2021, the stock closed at $516.68 per share.
Here is what Richie Capital Group has to say about MarketAxess Holdings Inc. in their Q4 2020 investor letter:
“MarketAxess (MKTX – Up 16.8%) – MarketAxess is the dominant exchange trading platform for corporate bonds. We invested in the company at the beginning of 2020 based on their roadmap for organizing the bond marketplace into an electronic ecosystem similar to the system available for common stocks. Our timing could not have been better as 2020 set a record for US Corporate Bond issuance. The company has continued to gain traction as the pandemic accelerated the shift to digital and online bond trading as bond traders were forced to work from home.”
Our calculations show that MarketAxess Holdings Inc. (NASDAQ: MKTX) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, MarketAxess Holdings Inc. was in 34 hedge fund portfolios. MKTX delivered a -8.68% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
